JeffreyteckAfraid its ability to meet liabilities needs. In need for cash call to improve cash flow. TP lower than 50% of NTA.

30/01/2020 7:42 PM

kong73E.A. Technique (Outperform, TP: RM0.62): Bullish on 2020 performance. E.A. Technique (M) (EATech) is bullish on this year’s performance with an improvement of between 30% and 40% in its bottom line. Revenue from projects secured last year is expected to transpire in the current financial year. MD Datuk Abdul Hak Md Amin said EATech secured combined contracts valued at more than RM500m in 2019, including an Operation and Maintenance (O

E.A. Technique (Outperform, TP: RM0.62): Bullish on 2020 performance. E.A. Technique (M) (EATech) is bullish on this year’s performance with an improvement of between 30% and 40% in its bottom line. Revenue from projects secured last year is expected to transpire in the current financial year. MD Datuk Abdul Hak Md Amin said EATech secured combined contracts valued at more than RM500m in 2019, including an Operation and Maintenance (O&M) contract from Petronas Carigali SB, worth about RM20m annually. (The Edge)

Source: PublicInvest Research - 31 Jan 2020

03/02/2020 5:32 PM

HSienZI think Eatech will be benefited from the bullish oil tanker freight rate. If compare to Sealink, the total cap of Eatech is only half of Sealink but fundamental is much better than Sealink.

vcinvestorThere are 2 upcoming issues with this counter which you should take into consideration of your respective target price(s):

1) The payment claim made by MMHE (USD30m) has been adjourned until 18 March 2020. Who knows what the outcome of that will be but the company certainly cannot afford to pay out RM120mil++ in cash (Sept'19 closing bank balance = RM8.7 mil)

2) Private placement of shares + capitalization of debt owed to its holding co will result in the issuance of 223 mil new shares (about 42% of its current share capital) and that is BEFORE accounting for the exercise of 365mil new warrants (to be issued). The company had just written to SC for an extension for #2 which (if approved) gives them up to 3Q'20 to complete.

While the MD has come out to say he is bullish on the company's prospects in 2020 (which is fair, based on recent contract wins and deliveries) these two events are looming over the company in 2020 and shareholders who bought in before the recent price drop (like myself) will likely have to hold this counter for the mid to long term (The free warrants are a sweetener too).

JK22From quarterly report on consolidated results for the period ended 30 September 2019

CHANGES IN MATERIAL LITIGATION i) Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”) and E.A. Technique (M) Berhad ("EAT") MMHE, a wholly owned subsidiary of the Company, and EAT are parties to a contract entered in June 2015 for the Provision of Demolition, Refurbishment and Conversion of Donor Vessel into a Floating, Storage and Offloading Facility for Full Development Project, North Malay Basin (hereinafter referred to as the “Contract”).

Disputes and differences have arisen between parties, amongst others, in relation to MMHE’s entitlement to payment for additional works completed under the Contract pursuant to the Additional Work Orders (“AWOs”), as well as in relation to a Letter of Undertaking dated 22 June 2018 (“LOU”). In this respect, the following proceedings have been filed

A Notice of Arbitration was filed by EAT on 27 September 2018 claiming for the sum of USD21,656,198 being (a) alleged overpayment; (b) refund of sums paid by EAT to MMHE under the LOU; (c) certain costs incurred under the Contract as well as (d) a declaration that MMHE is not entitled to payment for the AWOs.

MHE disputed EAT’s claims and filed in a counter claim, amongst others, for the sum USD49,095,096 being payment for the AWOs, prolongation costs and additional costs incurred due to variations to the original scope of work.

The Group will continue to rigorously defend the claims made by EAT and pursue its counterclaims. The evidential hearing has commenced and presently scheduled to conclude by 8 November 2019.

E.A. Technique (Outperform, TP: RM0.62): Bullish on 2020 performance. E.A. Technique (M) (EATech) is bullish on this year’s performance with an improvement of between 30% and 40% in its bottom line. Revenue from projects secured last year is expected to transpire in the current financial year. MD Datuk Abdul Hak Md Amin said EATech secured combined contracts valued at more than RM500m in 2019, including an Operation and Maintenance (O&M) contract from Petronas Carigali SB, worth about RM20m annually. (The Edge)

copymen54321why profit wont continue????they have been consistently earn at least 6m for 4 quarters, few new projects going to start this year, lets say private placement increase 30-40% of the capital shares and these new projects profit offset it, forward EPS for FY2020 only 5-6sen, hey PE 8 already 40sen and PE10 is 50sen, look at their money earning capability,not those stupid court case that might drag for few years, even if they have to pay for losing court case, but does it affect their capability to earn money??? No!

27/02/2020 11:02 PM

SmallretailerWalauwei. 32 sens. Malaysia really has to buck up and choose a pm or reelection